Finding Product-Market Fit: A Practical Guide

Marc Andreessen famously said, "Product-market fit means being in a good market with a product that can satisfy that market." But how do you actually know when you've found it?

What Product-Market Fit Feels Like

When you have PMF, things feel different:

• Growth feels effortless - Users are coming to you
• Retention is strong - People keep coming back
• Word of mouth spreads - Your users become evangelists
• You can't hire fast enough - Demand outpaces your capacity

Conversely, without PMF:

• Every sale is a struggle
• Users churn quickly
• You're constantly pivoting
• Growth relies entirely on paid acquisition

The PMF Measurement Framework

1. The Sean Ellis Test

Ask your users: "How would you feel if you could no longer use this product?"

• Very disappointed - These are your core users
• Somewhat disappointed - Potential to convert
• Not disappointed - Wrong audience

The benchmark: If 40%+ say "very disappointed," you likely have PMF.

2. Retention Curves

Plot your user retention over time. You want to see:

Week 1: 100%
Week 2: 60%
Week 4: 45%
Week 8: 40%
Week 12: 38%  ← Flattening = Good

A flattening curve indicates you've found a sticky use case.

3. Net Promoter Score (NPS)

Ask: "How likely are you to recommend us to a friend?" (0-10)

• Promoters (9-10): Your champions
• Passives (7-8): Satisfied but not loyal
• Detractors (0-6): At risk of churning

NPS = % Promoters - % Detractors

Aim for 50+ in B2C, 30+ in B2B.

The Path to PMF

Step 1: Talk to Users (A Lot)

Schedule 10+ user interviews per week. Ask:

• What problem were you trying to solve?
• How did you solve it before?
• What would make this product indispensable?

Step 2: Identify Your Best Users

Look for patterns among your most engaged users:

• What industry are they in?
• What's their job title?
• How did they find you?
• What feature do they use most?

Step 3: Double Down

Once you've identified your best segment:

1. Build features specifically for them
2. Create content that speaks to their problems
3. Find more users like them

Step 4: Iterate Relentlessly

PMF isn't a destination—it's a moving target. Markets change, competitors emerge, and user needs evolve.

Common PMF Mistakes

1. Scaling too early - Growth before PMF is a recipe for expensive failure
2. Ignoring churn - High acquisition means nothing if users leave
3. Building for everyone - Focus beats breadth in the early days
4. Listening to the wrong users - Paying customers > free users

The Bottom Line

Product-market fit isn't a checkbox—it's a feeling backed by data. Keep talking to users, keep measuring, and don't be afraid to make hard decisions based on what you learn.